Day-Trading 2.0 for small traders

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Quote from IronFist:

I hope my questions aren't annoying :)

My next question is posted on this chart example:

Chart setup:
300 constant volume chart
240WMA
144WMA (the other one, but ignore this one)
6WMA
also a 6 "Zero Lag MA". It pretty much matches the 6WMA but I was just plotting them both for comparison purposes.

stoplocation-1.jpg
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IF,

Why are you showing a 300 constant volume window on the screen.

regards
f9
 
Dear Iron fist,
I think you just touched THE point of what bothered me in the examples JJvrat brought so far, and I mentioned it before. The stop we use is just way too big comparing our profit target.

I think this problem has many solutions, I'll mention few of them but you should know, the better you'll knw the instrument and timeframe you're trading the better you'll know where to place your stops.

for the solutions here's a few I use but that really depends on the instrument:
1) Enlarge your profit target. How large? I prefer it to be close to my stop. for example let's say your stop is 49 ticks then your target should be 40-45 ticks. If you feel uncomfortable with wating so much you can scale out, meaning you take half of your position in a fixed target and then you raise your stop to breakeven and wait for the other target to be hit.
2) Don't ber afraid to take to much risk. In a lot of my trades my stop is almost twice my profit target. from my experience if you maintain a 80-90% rates of success (which JJvrat method is way capable of) then you should still be profitable enough.
3) Tighen your stops: I think as you'll get more screen time you'll be able to see that you can really tighten your stops even if they are not in an obvious thechnical point. This might lower your succsess rates but will also limit your losses.
4) The most important tip: adjust your targets and profits to the timeframe you're trading. For example it not very logical to use 5 sec chart's profit targets in a 5 minutes chart. From what I see in your chart the timeframe your trading is too "slow" to you profit targets as the normal waves in this timeframe make dozens of ticks it's really not very smart to set a PT of a merely a few ticks. You have to find the timeframe which suits your character best, learn it thoroughly and then build a trading plan (stops and targets) based on your experience.

and one last point I really don't like WMA as triggers. Try using HMA's LSMA's or volatility stop as triggers.
 
Quote from fearless9:

IF,

Why are you showing a 300 constant volume window on the screen.

regards
f9
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I was using 300 volume bars instead of minute charts. A lot of posts in this thread have mentioned volume and tick charts instead of time-based charts, so I'm playing around with them.
 
Quote from amitman:

I really don't like WMA as triggers. Try using HMA's LSMA's or volatility stop as triggers.
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Why?

I've been plotting lots of MAs over each other to see if one gives a trigger signal a bit before the others. I've been doing 2, 4, 6, 10, 12, and 21 (all arbitrary numbers I just randomly picked) WMA, EMA, LSMA, and now that I have SierraCharts, HMA and Zero-Lag MA.

I can never find one I like.

My problem with trading is I do not like ambiguity one bit! I want everything optimized to be 100% mechanical. For example

- Use x period Moving Average. Only use x. It is not (x+1) or (x-1). It is only x.

No confusion. No room for interpretation.

- Enter in the following circumstances:
-- a
-- b
-- c

(of course, these can be multiple conditions each with their own multiple conditions, but I want it all to be 100% technical and systematic. No room for interpretation. No "feeling." No violating preset rules "because you felt like it." If the opportunity to violate a preset rule exists, then alterations and exceptions to the original rules must be made.

- Exit in the following circumstances:
etc.




I believe such systems exist. I don't even think that there is only one system fitting those rules. There could be many. It's just a huge pain to develop/perfect such a system.
 
IronFist

I hope my questions aren't annoying
My next question is posted on this chart example:
Chart setup:
300 constant volume chart
240WMA
144WMA (the other one, but ignore this one)
6WMA
also a 6 "Zero Lag MA". It pretty much matches the 6WMA but I was just plotting them both for comparison purposes.

First, don’t get me wrong but you are going to need a lot more effort and discipline if you are pretending to become a daytrader. Open a demo account with a charting platform that I recommend you just yesterday with random ideas you have read in this thread that you only start “reading” a few days ago (according to your thread) will lead you nowhere. At least you should set the correct tick size for the YM and getting rid of this no sense volume subchart with a constant volume chart.

Second, who told you or where did you read that price analysis as shown in this thread is about a predefined recipe that you have to follow as the Holy Grail. If you haven’t read the entire thread at least read the first 4 pages, if you have, I would suggest you to reread it but this time with more attention to the important issues for price analysis.

Third, Why did you choose a 300 vol chart? This is a fast chart and I wont recommend it for beginners?

4th, A 6 zero lag EMA for wave analysis and entries, why? based on what?

5th, Assuming that your 6 ZL EMA is giving you clear waves, the entry was at 13007 (change or slope or close above both at this point) not at 13009

6th, I have never post anything specific about stops in this thread (not yet) the only reference was that if you have wave analysis at least you will now where are your limit for entries and what is the max limit for stops (1 tick below the last wave low). You are misinterpreting the 1 tick below the last low as a rule for stops.

7th, In any case the last wave low is not at 12962 but is at 12996 'cause if you took that trade is because you already knew a new last low was made. So it was only 11 points down (which is pretty healthy for that level of noise and the average true range in that chart). Plus that trade had 1 tick drawdown with a max profit range 15 ticks in 5 minutes that will be more than enough for a “few ticks profit on the scalp”.

8th, I don’t know your background but if you are new in the business don’t even dream that you can make consistently 1 trade like this every day if you don’t work hard, have strong discipline and elaborate your own consistent and sustainable trading plan.

9th, I don’t get annoyed answering question or discussing trading issues, however if you want my opinion or you have any questions related to this thread in the future I will recommend to put more effort before you post a comment on something you just skim.

jjrvat
 
I'm in the process of re-reading this thread and summarizing all trading rules into bullet points. I'll post it (with pics and questions) later when I finish. This is a long thread!!
 
Quote from italianfx:

I use ninja 6.5 maybe they work only with 6.5

they are the same you sent me
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Hi I'm to have errors with this Indicators, do you know where do i need to put them? (I've placed them i My Documents/Ninja Trader 6.5/Costum/Indicator) but when I try to import them I have a message that I have programming errors and I must fix them before i can import indicators.
BTW I use NT 6.5
 
Quote from IronFist:

I was using 300 volume bars instead of minute charts. A lot of posts in this thread have mentioned volume and tick charts instead of time-based charts, so I'm playing around with them.
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I mean that if you know each bar contains 300 contracts, then why take up screen space by showing it.

regards
f9
 
Quote from fearless9:

I mean that if you know each bar contains 300 contracts, then why take up screen space by showing it.

regards
f9
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Oh. Yeah you're right, if I'm using constant volume charts I don't need to have volume displayed on the screen. However, I like to watch the volume bar "fill up" as it acts as kind of a countdown timer for when the next candle will appear (I'm aware there are also numerical countdown indicators).
 
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